The role of FAGACE in financing the Congolese economy at the heart of discussions
08 nov, 2019
Calixte Nganongo, Congolese Mnister of Finance and Budget, opened Friday, November 8, 2019 in Brazzaville, the work of the meeting on exchange and share of experience between the African Guarantee and Economic Cooperation Fund (FAGACE) and the Banks of Congo, in the presence of his colleague Adeleaïde Mougany, Minister of Small and Medium-Sized Enterprises, Handicraft and Informal Sector. The discussions focused on the theme: “Financing the Economy of Congo: What role for FAGACE?”
The role of FAGACE is to serve as an endorsement for economic operators with projects, who request loans from banks. For, among the hurdles encountered by project promoters is the weak guarantees required by banks. “This is where the FAGACE's contribution lies, in that it complements the range of instruments designed to facilitate access to credit by the promoters of Small and Medium-Sized Enteprises (PME)”, Calixte Nganongo said.
FAGACE can also support micro-projects through the Impulse and Guarantee Fund (FIGA), thanks to a Re-guarantee mechanism. “Discussions along these lines have been initiated with the Ministry in charge of SMEs and Handicraft, with a view to supporting FIGA by FAGACE, through the supervision of staff and the opening of a counter-guarantee line”, the Congolese Minister of Finance said.
The financing of SMEs/SMIs and micro-projects by FIGACE is therefore desired, because Congo has placed the diversification of its economy at the centre of its development strategy, to gradually reduce the dependence of its economy on oil rent.
At the end of the meeting, Basile Tchakounté, Acting Director General of FAGACE, encouraged the participants to popularize the various tools of this financial institution which is, unfortunately little known in Congo.
As a reminder, FAGACE was created 1974. It has 14 countries (Benin, Burkina-Faso, Cameroon, Central Africa, Congo, Côte-d'Ivoire, Guinea Bissau, Mali, Mauritania, Niger, Rwanda, Senegal, Chad and Togo), with its headquarters in Cotonou (Benin). Congo joined in 2011.
